AIG's Marks May Be Deep

Investors Expect
A Bad Quarter Now,
But What of Later?

By

Liam Pleven

Updated May 8, 2008 12:01 a.m. ET

Investors have braced for more dismal news from American International Group Inc. when it reports earnings Thursday, as the giant insurer grapples with losses from derivatives tied to subprime mortgages.

But the less obvious risk in AIG's travails is that they will play out over the next several years in the form of sluggish profitability, weaker...